Karstadt reaches for Kaufhof/Galeria. Real estate in sight

dossier

“The tremors of employees in retail continue. The current Karstadt owner René Benko is making a new attempt to incorporate the Kaufhof. The Austrian Benko had already attempted to do this several times. But in October 2015 the contract was awarded to the Canadian Hudson's Bay (HBC). Staff and some works council members took a deep breath. But, as is so often the case, this was a fallacy. Shortly after the purchase, HBC showed what is important when it comes to making money quickly. Staff cuts, leasing of sales space to third parties, wage cuts through forced part-time work were also the rules of the game for the HR managers in the branches at HBC. From the start, the Canadian followed a similar business policy to that of Benko..."Article by Herbert Schedlbauer from July 6th, 2018, first published on July 6th, 2018 in the uz - we thank you! See thisfurther information and in it NEW: The 5th bankruptcy at Karstadt-Kaufhof-Galeria for the remaining 12,000 colleagues - and ver.di is again and still demanding clarification..

Karstadt attacks Kaufhof

Real estate in sight

The tremors of employees in retail continue. The current Karstadt owner René Benko is making a new attempt to incorporate the Kaufhof. The Austrian Benko had already attempted to do this several times. But in October 2015 the contract was awarded to the Canadian Hudson's Bay (HBC). Staff and some works council members took a deep breath. But, as is so often the case, this was a fallacy. Shortly after the purchase, HBC showed what is important when it comes to making money quickly. Staff cuts, leasing of sales space to third parties, wage cuts through forced part-time work were also the rules of the game for the HR managers in the branches at HBC. From the start, the Canadian followed a similar business policy to that of Benko. Karstadt literally copied the approach of how the capitalist principle of maximum profits should be achieved. Using the same script, this was the quickest way to make a profit for the shareholders. The rents in the branches exploded at the Kaufhof as well as at the Karstadt Kahlschlag. Pieces of fillet were sold. Due to the far too high rents in 41 branches, the Kaufhof slipped into the red. Instead of relying on more advice and staff, HBC continually turned the screw on fear. The result was an intensification of work and the destruction of jobs. But now that's no longer enough. The Canadian Locust and investor Simon Property want to see more money. The shareholders are pushing for a sale.

According to insiders, there are talks about a new trading group between HBC and Karstadt, the Austrian sign of the real estate investor René Benko. Negotiations are underway for Karstadt to acquire a 51 percent stake in Kaufhof. In order to push up the current sales price, the Kaufhof management wants to agree on a restructuring collective agreement for the approximately 17,000 employees of Galeria Kaufhof with the help of the ver.di union before the sale.

A good week ago it became known that Benko, as expected, is a real estate speculator who has his sights set on the large department store branches of the Kaufhof Group. Similar to Karstadt, these are located in prime locations in the inner cities. The merger of the two department store chains is likely to lead to numerous closures and further job losses. In Munich, Hamburg, Essen, Leipzig and Düsseldorf you can find Kaufhof and Karstadt in close proximity to each other. In addition, a new department store company would thin out administration and purchasing. Which costs more jobs.

This does not mean anything good for the employees. Centralization will lead to even more growing insecurity. A ver.di spokeswoman could not be reached when asked how the union would respond to the situation.

Herbert Schedlbauer

_____________________________

Further information on the progression of the tragedy

• The 5th bankruptcy at Karstadt-Kaufhof-Galeria for the remaining 12,000 colleagues - and ver.di is again and still demanding clarification...
  
  • After another bankruptcy declaration: ver.di demands clarification from Galeria
    “After another insolvency declaration at the department store group Galeria, Silke Zimmer, federal board member of the United Services Union (ver.di) responsible for retail, explains: "The employees have been fearing it for a long time: Galeria today opened the fourth insolvency proceedings in just six years, without any explanation of the circumstances. This means complete uncertainty for the 12,000 colleagues in the 83 remaining branches.
    Hair-raising management errors have led to this development. In recent years, the shareholders have not made any sustainable investments.  We now need quick clarification as to what will happen next for the 12,000 employees.
    Involvement of employees and the general works council is essential. Employees now need a plan for the future and not smokescreens!”“  ver.di press release from October 2nd, 2026 
  • Fifth bankruptcy at Karstadt-Kaufhof-Galeria: How the service union ver.di allows itself to be led through the ring by the nose again and again
    "... In 2026, the Galeria department store group will be in the headlines again; on October 2, 2026, it filed for bankruptcy again. What will happen next for the approximately 12,000 employees in the 83 department stores is once again unclear. The service union verdi is once again reacting indignantly after four Karstadt bankruptcies and the spectacular collapse of the owner, the Signa Group. Ver.di has these games with the investors time and time again, concentrating only on the private sector solution, which has already failed four times, and considering new concepts to save jobs, such as municipalization or continuing to run the company as a cooperative, are not and have not been approved by the union. But this is only a given, the result has been the same for decades: namely, shamelessly sucking the life out of the company on the backs of the employees (...)
    The first insolvency proceedings at Karstadt were completed in 2009. In the second insolvency proceedings in 2020, Galeria was also able to get out of debt and closed 40 of 172 branches, with around 5,000 employees losing their jobs. More than two billion euros in debt was also canceled. That was apparently not enough, as the third bankruptcy in 2023 showed. In this process, the group was able to get rid of its liabilities of around 900 million euros, and the bottom line was that there was even money left over in the past financial year. More than 5,000 of the 17,000 jobs were to be cut. (…)
    In the fourth insolvency proceedings they wanted to do the same thing again, namely look for investors, and expected different results than in the three previous insolvencies. At the end of July 2024, the Essen district court annulled the fourth Karstadt insolvency proceedings with a decision after seven months. This now paved the way for the company to be taken over by the US investment company NRDC Equity Partners and the entrepreneur Bernd Beetz. (…)
    At the direction of NRDC Equity Partners, Galeria has now restructured its management team. Olivier van den Bossche, the former boss of Galeria Kaufhof, was fired. Lucas Evans, the top manager at NRDC Equity Partners, is said to be behind this decision. Evans was then able to convince the financial investor Bain Capital to give the department stores a loan, for which high interest rates are apparently due, we are talking about 15 percent and a term until April 2029, and the group has to provide extensive collateral, such as its inventory. The amount of the loan was not officially announced, but the figure was given as 60 million euros. The service union ver.di has also played these games with investors again and again, concentrating only on the private sector solution, which has already failed four times, and always looking for new owners. You keep promising yourself that you will achieve a different result by doing the same thing.” Post from October 3, 2026 in unionsforum.de 
• Department store chain Galeria is not calming down: one year after the department store company restarted, problems remain 
  “…And what about the 12,000 employees? Galeria announced last fall that it would not negotiate with the Verdi union and would instead establish a kind of in-house collective agreement – ​​a “company alliance”. Despite the outcry from Verdi and parts of politics, management remained tough.
  For the change to come about, more than 90 percent of all employees in the remaining 83 branches in Germany and in the Essen headquarters had to agree. After a few weeks of negotiations, there was ultimately broad agreement from the entire workforce. The result provided for inflation compensation and a gradual 8.5 percent increase in salary until 2027. “It was about 800 euros in cash and just before Christmas,” remembers employee Dieter. And adds: “It was important to me that we still had a job after the bankruptcy.”
  “That was also a clear vote against Verdi,” says Dieter. But he also understands his colleagues who remained steadfast. “But there were only very few.” They went to court to demand collective pay according to the “integration collective agreement”. Dieter says that no company in the industry can still afford to pay according to the tariff. Other employees - including Verdi members - say that the union has not achieved much for local employees in recent years. This is also why they agreed to “the collective bargaining escape”.
  “Three bankruptcies in a short period of time ensured that Galeria employees always helped finance the crises at Galeria Karstadt Kaufhof,” explains Verdi. The new owners, Beetz and Baker, withdrew from the “company alliance” from the promise to pay according to the collective agreement. Some employees are now fighting in court to ensure that they are paid the salary they were entitled to under the collective integration agreement after the last insolvency. "It is shameful and not okay that such a large, traditional company like Galeria, after overcoming insolvency, simply does not apply agreed regulations and does not pay people what they are entitled to." Verdi is counting on the courts to see it the same way.”Article by David Bieber from September 1st, 2025 in ND online 
• One year after the “restart” at the department store chain: Galeria in constant crisis, uncertain future for branches and workforce, especially at Alex in Berlin
  
  • Galeria in constant crisis: Uncertain future for branches and workforce – even a year after the “restart” at the department store chain
    "While the former owner of Galeria Karstadt-Kaufhof, the Austrian real estate bankrupt René Benko, is awaiting his first criminal trial in custody for fraudulently causing insolvency, after a year with new owners, rumors of crisis are increasing around the department store company, which now operates under the name "Galeria". Sales and profits fell significantly in May and June, the Handelsblatt reported on Monday with reference to corporate circles. The end of July 2024 was The third insolvency proceedings within three and a half years for the Karstadt and Galeria-Kaufhof stores, which were once closely represented nationwide, have come to an end. The newly debt-free company was taken over by NRDC Equity Partners led by the US investor Richard Baker, BB Kapital from the German entrepreneur Bernd Beetz and now the Boston financial investor Bain Capital, which holds the smallest shares but is expected to play a key role in Galeria had led department stores and real estate rapidly into bankruptcy with its various Signa companies, the future for the remaining 83 Galeria branches seems uncertain in view of the developments in sales and profits (...) What is certain is that Galeria has not yet completed planned innovations, such as the move of the headquarters from Essen to Düsseldorf. However, department store space is continuously being rented to other companies, such as the food discounter Lidl and the sporting goods chain Decathlon obviously wants to separate itself from the space it uses and the associated costs through further collaborations.According to Stern, the modernization of the department stores, which had been neglected for years, is making progress. Twenty branches have been converted since the summer of 2024, and four more are to follow this year. In the future, there will be five to ten renovations per year. From the point of view of Carsten Kortum, a trade expert from the Baden-Württemberg Cooperative State University, this is not enough because the modernization would only be completed in ten years at the announced pace. Then you would have to start all over again. Many houses are still not very attractive for customers and employees. "The air is still thin and investors are trying, as in the past, to extract money from the company," the magazine quoted him as saying. Kortum estimates the investment requirement at 20 million euros per branch. Meanwhile, Galeria is regularly losing management staff. (…) The board members seem to be looking for career opportunities elsewhere.” Article by Gudrun Giese in the Junge Welt from July 24, 2025 
  • Hiccup about Galeria am Alex: Owner wants to sell property to Land Berlin and get leasehold. Consideration of moving in library. Department store employees fear for jobs
    “The shrunken Galeria department store chain is apparently not planning any further store closures in the near future. Things could turn out differently for the house on Berlin's Alexanderplatz. Commerz Real, a subsidiary of Commerzbank AG, has been the owner here for a long time. In the future, she would like to donate significantly less space to the department store business than before and instead offer large parts of the building to the State of Berlin for the Central and State Library (ZLB). (…)
    It currently remains unclear what will happen to the Galeria department store in the near future, as the rental agreement with Commerz Real ends on February 28, 2026 and must be extended. While it was initially apparent that the existing agreements could be continued until August 31, 2026 "under constant economic conditions" in order to gain time for negotiations, this agreement has now become questionable, the Morning Post reported last Friday. Commerz Real is demanding almost four million euros from Galeria in addition to the rent for the elimination of construction defects and better fire protection. The department store company, however, only wants to raise around a quarter of this demand. Negotiations on the disputed monetary claims are not scheduled to continue until August, meaning that time could be running out for Galeria to develop a possible social plan if no agreement is reached. After all, there are around 350 jobs at stake at the site of the former Centrum department store…”Article by Gudrun Giese in the Junge Welt from July 25, 2025 
• Galeria facing the next crisis: new trouble is looming at the department store chain. Good interest rate deals from investors with remaining branches
  “In the case of the Galeria department store chain (formerly: Karstadt and Galeria Kaufhof), we can once again observe how investors are using this company for their own enrichment after debt relief and insolvency proceedings. (…) There are currently around ninety branches left. And they don't seem to be doing good business. According to an article in the Grocery Newspaper (LZ) last Wednesday, “the weak sales development is causing investors to put more pressure on the department store group.” NRDC Equity Partners in particular are setting the tone. The Baker family's New York investment firm holds 65.8 percent of the shares through a Luxembourg company, while Beetz only holds 28.2 percent. In addition, the Boston financial investor Bain Capital now plays a central role in Galeria. Although it has the smallest stake in the company at six percent, it plays a key role as a lender. (…)
  To ensure that the little money that the branches still generate ends up in the right pockets, the financial investor Bain Capital was brought in, which has nothing to do with the operational business and does not exercise any control rights over Galeria. To do this, he gave the department stores a loan, "for which apparently high interest rates are due and the retailer has to provide extensive collateral," according to the LZ. According to documents filed with the US Securities and Exchange Commission (SEC), a “first lien senior secured loan” was registered for Galeria with interest rates of 15 percent and terms until April 2029. The total amount of the loan was not listed. The LZ refers to insiders who speak of around 60 million euros with which the restart of Galeria should be financed. The sum is secured by the company's inventory…”Article by Gudrun Giese in the young world from June 23, 2025 
  • The ver.di company website offers a chronology of the helpless misery:https://handel.verdi.de/unternehmen/galeria – without current status
• ver.di strike in Berlin-Brandenburg for collective bargaining, because the Galeria management is individually trying to raise some wages in exchange for completely waiving the collective agreement
  • Against the massive pressure of GALERIA management - ver.di is on strike in Berlin-Brandenburg for legally secure wage increases and collective bargaining
    “The ver.di union is calling on GALERIA employees to go on strike on Tuesday, November 5th. With the strike, ver.di is putting pressure on Galeria employees for a collective wage increase. The union urges the company to stop making immoral, poisonous offers to sellers and to return to the negotiating table immediately. The background to the escalation in the dispute is the blatant pressure on the employees by the Galeria management. Management makes it a condition for a wage increase that employees waive the protection provided by the collective agreement. In addition, the company pits colleagues against each other. Only if 90% of the employees in a branch waive the protection of the collective agreement should the wage increase be paid - and only to those who agree to this waiver.
    This deliberately sows discord in the workforce and increases the pressure on colleagues who want to hold on to the protection provided by the collective agreement. (…) “Galeria is trying to prevent a legally secure collective agreement with the so-called “company alliance”. However, only with a collective agreement can income and working conditions be regulated in a legally secure and binding manner. Without a collective agreement, sellers will in future be dependent on the “goodwill” of their employer. That would also open the door to the general collective bargaining regulations, such as the number of vacation days, surcharges, etc. Everything would now be vulnerable," explains Conny Weißbach, head of the Berlin-Brandenburg trade department. "The new owners are promising more money for the employees, which is actually urgently needed. But in return they demand that the collective agreement be waived. In this way, they drive the salespeople into a corner, because in principle they only have the choice between plague and cholera.”…”Press release from November 4th, 2024 from ver.di BB 
  • Department store chain Galeria: wage increases bypass the union. The retail company Galeria wants to force Verdi out of its branches with a wage increase
    "Once again there is a groaning in the rafters of Berlin's retail trade. Once again the focus is on the Galeria department store chain. In front of the branch on Schloßstrasse in the Steglitz district, around 60 employees came together for a strike rally. They followed a call from the service union Verdi. Verdi has been struggling to reach a new agreement for collective wage increases since 2022, when management terminated the collective integration agreement. While Galeria had submitted its own offers in the summer of this year, which the union rejected as inadequate, the negotiations now seem to have other things in mind. Galeria had informed the employees that they would implement the last offer "if necessary without a collective agreement." A signature would give the individuals a wage increase of 11.3 percent by October 2026 - but not covered by a collective agreement. Rather, according to Verdi, the waiver of a collective agreement is made a condition for the wage increase. Only if 90 percent of the employees in a branch waive a collective agreement, the wage increase should only be paid to those who have signed the agreements (…)
    The word coercion was often used at the rally in front of the Schloßstraße branch. An employee in a yellow strike vest tells »nd« that she too was presented with a corresponding agreement to sign. Did she sign the agreement? “I won’t comment on that,” she says. However, “a whole lot” of her colleagues signed. Union secretary Ralph Thomas can understand why the workers signed the agreement. The wage level of Galeria employees is falling further and further behind that of the collective agreement, now up to 30 percent. The campaign perfidiously launched by Galeria appears to many to have no alternative. The employees are afraid that they won't get any wage increases otherwise, says Thomas. (…)
    Conny Weißbach, regional department head at Verdi, sees it as a mistake that the state support of 680 million euros to supposedly save Galeria was not linked to employment conditions. (…)
    Some of those who came to Steglitz are dissatisfied that their colleagues from Alexanderplatz are not at the rally. »If not them, then who? “They have nothing left to lose,” says an employee. (…) It is not unusual for employees to duck away after attacks and not show their faces publicly, says Verdi secretary Ralph Thomas. He still wants to reach out to the employees and put Alexanderplatz at the center of future disputes over Galeria…”Article by Christian Lelek from November 5th, 2024 in ND online – the gap to the tariff is, however, self-inflicted
• Galeria: ver.di criticizes “adjustment of remuneration without collective agreement” as a “poisoned offer” from the new owners 
  “The United Services Union (ver.di) is outraged by the Galeria management’s announced offer to employees for an “adjustment of remuneration”. "The announced offer is poisonous and immoral. We call on the management to refrain from such offers and to return to the negotiating table," said ver.di federal board member Silke Zimmer. "The employees at Galeria - unlike the owners - have kept the store running for years. They deserve fair pay without any ifs or buts." In the course of the termination of the integration collective agreement, Galeria is obliged to negotiate a follow-up regulation with ver.di. The fact that the new owners wanted to undermine this with their announced offer for an “adjustment of remuneration without a collective agreement” was the last straw, said Zimmer. “Galeria is planning a permanent farewell to the industry’s regional wage and collective agreements and, as a result, an income level well below the usual market wages in the long term – that cannot be done with us.” Galeria employees already receive almost 30 percent less than retail employees with a collective agreement, Zimmer continued. It is therefore good that the management is offering the employees more money - but the conditions for this are pure blackmail. By signing the working conditions changed by the employer, the employees would revoke the effect of the integration collective agreement and thus the legal right to all previous collectively agreed retail services. What benefits will be granted in the future will then be entirely up to the employer's decision.In addition, according to management's plans, 90 percent of a branch's colleagues would have to agree to the offer for it to be implemented. Zimmer: "It is obviously an attempt to extort consent to the offer by putting employees under pressure from each other. This contradicts the principle of individual freedom of contract.“ver.di press release from October 16, 2024 and to that:
  • Galeria: Earnings without a collective agreement? Verdi criticizes the frontal attack on collective bargaining principles by new company owners
    "In September, Galeria's labor director Guido Mager announced that he wanted to preserve "all collective agreements in their current version, especially the general collective agreements." However, the department store group has now apparently moved away from this. According to the Verdi union, it is planning a permanent departure from the industry's regional wage and general collective agreements for the remaining approximately 12,500 employees. Instead, they should individually agree to an offer from the company "without a collective agreement," as stated in a Verdi statement The negotiations with the union about nationwide contracts have been put on hold for an "indefinite period of time." Galeria's current offer, which the employees should agree to individually, provides for a total wage increase of 11.3 percent over three years until October 2026. The salary increases are to take place in four stages: 3.0 percent from October 2024, another 3.3 percent from January 2025 and a further 2.5 percent from October 2025 and 2026. In the long term, the employees' pay will remain significantly below the industry average, the service union complains. In view of the company's difficult situation, employees have given up up to 30 percent of their salaries compared to the retail tariff “Don’t accept it,” emphasizes the union.Galeria must finally take responsibility and develop a sustainable solution for its employees instead of continuing to rely on questionable methods. (…) The union is particularly annoyed that the new owners would undermine previous agreements with their announced plan. This would affect, for example, the after-effects of the so-called integration collective agreement (ITV) and the employees' legal right to previous collectively agreed benefits. The ITV was negotiated in 2019 as part of the merger of Karstadt and Kaufhof and includes, among other things, a gradual alignment of wages with the regional retail collective agreements as well as location and job security. In return, the salaries of senior employees were cut, among other things. (…) According to its own information, the company has been acting solely responsible again since August. After the US investment company NRDC Equity Partners and the Swiss-based company BB Kapital, controlled by entrepreneur Bernd Beetz, entered the business, an Essen court overturned the bankruptcy filing. The department store chain was incorporated into the Nabo Holdings group based in Luxembourg. The new owners plan to further reduce costs. Of the 92 branches that still exist, only 83 will be retained. This is also accompanied by corresponding job cuts. In parallel with the savings, the consortium aims to raise investments of up to 100 million euros to drive forward the modernization of the business, especially in the area of ​​online commerce.” Article by David Bieber from October 21, 2024 in New Germany online 
  • Galeria: Frontal attack on basic collective bargaining positions
    "Three bankruptcies in four years: There are now new investors at Galeria Karstadt Kaufhof, and for many employees they are old friends who have already tried to save the department store group. With little success. First, they changed the name to Galeria and closed some branches. ver.di is struggling with the remaining 12,000 employees to find a viable future concept
    Galeria is offering employees 11.3 percent more wages over three years until October 2026. That doesn't sound so bad at first. But this offer is poisonous: No gradual alignment of wages with the regional collective agreements, no location and employment security, no regional compensation in the event of operational dismissals retroactively for 12 months - what the new management of Galeria had already demanded on September 18th was already like a frontal attack on the basic collective bargaining positions that the Galeria employees had fought hard for in the past few years. And today they already receive almost 30 percent less wages than retail employees with a collective agreement. After the Galeria management initially announced that they wanted to keep all collective agreements in their current version, the new offer turns out to be really bad. Although the integration collective agreement (ITV), which regulates a lot of social security, remains binding, the employers want to take a completely different direction instead. This cannot be done with ver.di and its employees…” more extensiveArticle from October 16, 2024 at ver.di 
• Galeria Karstadt Kaufhof: ver.di Federal Tariff Commission rejects the management's future concept because it would once again be at the expense of the employees
  “After a short first day of negotiations, on Wednesday evening (July 17, 2024), the Federal Collective Bargaining Commission of the United Services Union (ver.di) decisively rejected a proposal from management on the future of Galeria Karstadt Kaufhof, as it would once again be at the expense of the employees. "Anyone who wants to rush through a cheap deal is ignoring the tense financial situation of the people and their families at Galeria. Instead of developing a viable future concept, the Galeria management is wasting the opportunity to move into the future with well-trained and motivated specialists," said ver.di federal board member Silke Zimmer, commenting on the employers' offer. “The plans of the so-called department store collective agreement presented are not a viable future concept for the department store chain, which is in its third insolvency proceedings, but a pure cost-cutting program at the expense of the employees,” said ver.di negotiator Marcel Schäuble. (…) “What the employers presented to us today in the first negotiation is scandalous and an affront to the employees who work hard for the future of their company,” said Schäuble. With its idea of ​​a “new department store collective agreement”, the management is moving very far away from the regulations of the integration collective agreement from 2019, with which GKK survived the last bankruptcy. "You are once again planning on the backs of the employees. Your so-called future concept is a grab for the wallets of our colleagues at GKK." Ultimately, the management's current plans would not reduce the high difference to the applicable regional tariff in the countries. On the contrary…”ver.di press release from July 18, 2024 (“Galeria Karstadt Kaufhof: ver.di Federal Tariff Commission rejects management’s future concept”) – has never been a reason…
• [Hope dies last?] Galeria: restart in August with 83 branches (and with the remaining 12,000 employees)
  “Galeria Karstadt Kaufhof has gone bankrupt for the third time in three years. Now there are new investors, old friends for many employees who have already tried to save the department store group. With little success. ver.di will fight for its future with the remaining 12,000 employees
  The employees of Galeria Karstadt Kaufhof (GKK) have had a little more clarity since June 7th: On that day, insolvency administrator Stefan Denkhaus announced that a total of nine and not 16 branches would be closed at the end of August. A further 600 employees will retain their jobs in the department store company, which will soon belong to a consortium.
  According to current status, the branches in Berlin (Ringcenter), Berlin-Tempelhof, Essen, Wesel, Augsburg, Regensburg (Neupfarrplatz), Trier (Fleischstraße), Leonberg and Chemnitz will be closed on August 31, 2024. The houses in Berlin-Spandau, Cologne (Breite Straße), Mainz, Mannheim, Oldenburg, Potsdam and Würzburg will not be closed. The creditors' meeting had already approved the insolvency administrator's restructuring plan at the end of May, which created the conditions for the procedure to be formally concluded. After the collapse of the Austrian Signa Group, the previous owner, GKK had to file for bankruptcy again at the beginning of the year. The third procedure within three and a half years also ended with enormous losses in money, branches and number of employees.
  From August, the new owners, the US investment company NRDC of the department store entrepreneur Richard Baker and an investment company of the businessman Bernd Beetz, will take over 83 department stores with a total of 12,000 employees. Like the entire company, its name will also be shrunk: the chain will now be called “Galeria”.
  After the creditors' meeting, Marcel Schäuble, head of the trade department at ver.di Hesse and responsible for collective bargaining at GKK for the union, expressed great skepticism about the new owners' plans: "Those responsible have made unambitious statements about the goals for the future." In addition, past experience shows that the focus has always been on cost reductions. “This did not lead to the stabilization of the department stores, but was primarily at the expense of the employees.” This is completely unacceptable. (…)
  At ver.di, the plan to convert Galeria from a GmbH into the corporate form of a “société à responsabilité limitée” is also met with resistance because the supervisory board, in which employees and trade unionists previously exercised control functions, will no longer be present. “For a new start after the third bankruptcy, it would be important to draw on the experience of long-term employees,” emphasizes Silke Zimmer, member of the ver.di federal board responsible for trading. After all, they have long been directly affected by the consequences of many management errors. Now they would like to use their knowledge so that the same mistakes are not repeated.
  She reacted sharply to the new owners' plan to open the department stores once a month on Sundays…”ver.di report from June 18, 2024 
• Galeria Karstadt Kaufhof: Investor Richard Baker? That one again. When will it be time to demand socialization instead of hoping for rescue again?
  
  • Takeover of Galeria Karstadt Kaufhof: Statement from ver.di federal board member Silke Zimmer
    “Silke Zimmer, member of the federal board of the United Services Union (ver.di), explains the takeover of Galeria Karstadt Kaufhof (GKK):
    "We welcome the fact that a financially strong investor has obviously been found who wants to preserve Galeria as a whole and has expertise in retail, although our experiences in the past have been quite ambivalent. We therefore expect that the new owner will invest in the company, maintain the locations and secure long-term jobs for the employees. The new owner, together with the employees, should develop and launch a modern future concept that plays to the strengths of the department stores: a wide range of products paired with good advice. The employees already have suggestions on this developed, they have not yet been taken into account. This means that those who continually rely on cost reductions through branch closures, staff reductions and below-standard payments reduce the attractiveness of department stores for customers and impair the attractiveness of city centers.”ver.di press release from April 10, 2024 
  • More than 70 Galeria branches are to be saved
    “The US investor NRDC and the German entrepreneur Bernd Beetz plan to continue operating more than 70 of the 92 Galeria Karstadt Kaufhof branches. The new owners' final decision will probably not be made until the end of April…”Report from April 10, 2024 in the Spiegel online 
  • Galeria Karstadt Kaufhof: That one again. Investor Richard Baker takes over department store chain Karstadt Kaufhof
    “When it comes to Galeria Karstadt Kaufhof, it remains with RB: the bankrupt real estate mogul René Benko is followed by Richard Baker as the new investor in the German department store group. Its investment company NRDC Equity Partners signed the purchase agreement on Tuesday. The 58-year-old is no stranger, at least at Kaufhof. In 2015, its subsidiary Hudson's Bay Company (HBC) joined the department store chain. The investor made big promises without keeping them. Accusations of mismanagement became louder, the announcement of site closures caused criticism, and lenders became increasingly cautious. After three years, Baker, who repeatedly flew in with his dog Bella in a private jet, ended his involvement and sold to competitor Benko, who merged his own Karstadt chain with Kaufhof. (…) The return to Galeria - partner in this is the former Kaufhof supervisory board chairman Bernd Beetz - is likely to raise worried questions: Will the shrinkage continue? The group currently has 92 department stores, which is fewer than Kaufhof alone had when Baker joined.”Article by Kurt Stenger from April 9th, 2024 in the ND online 
• What happens next with Galeria Kaufhof Karstadt? The department stores to those who need them! 
  “Galeria Kaufhof Karstadt is now in its third bankruptcy since 2020. All the changes in ownership in the last decade neither secured the department stores as places to supply the population nor the jobs or training positions for around 25,000 predominantly female employees at the time. (…) They have not forgotten that they have repeatedly foregone collective bargaining benefits in recent years in order to save their jobs. And many people assumed that in the end it wouldn't do much good. »Are there no alternatives? There's nothing we can do!" (…) How important the city center department stores are to the cities, the employees and ver.di is shown by their activities to persuade the landlords of the properties to reduce rents. The question remains: Why should the market regulate everything? Why not dare to incorporate Galeria Karstadt Kaufhof in accordance with Articles 14 and 15 of the Basic Law? (…) This would be a new form of socialization through municipalization and cooperative participation of employees, customers and citizens…”Article by Anton Kobel appeared inexpress – newspaper for socialist company and trade union work– Issue 2/2024
• How could Benko deceive politicians like that? Confidential documents show how 680 million euros in state aid flowed to Galeria without sufficient security
  "...René Benko is said to have possibly shifted millions of dollars shortly before the bankruptcy of his Signa group. After these recent reports, investors have filed criminal charges against the Austrian. The legal processing of the Signa bankruptcy is one thing - but what about the political responsibility for the billions in damage? The first priority here is the 680 million euros in Corona aid for the insolvent Galeria Karstadt Kaufhof group; the Economic Stabilization Fund (WSF) had that Department store group paid, apparently without sufficient security and without reliable research into the financial background of the Signa/Benko empire. Confidential documents available to WDR show that those responsible in the WSF apparently expected Galeria to go bankrupt again. In this case, their outstanding claims against Galeria Karstadt Kaufhof were to be sold to Signa (...) On March 27, 2023, a secret so-called Put options agreement concluded; after that, in the event of Galeria Karstadt Kaufhof's insolvency, the parent company Signa was supposed to step into the breach and cover the WSF's claims against Galeria - but at a considerable discount. At this point, only 88 million euros were secured and this only included inventory, name and trademark rights. And Signa Holding should only have to pay 27 million euros for this remaining claim 60 million euros. However, there is no provision in the contract in the event that Signa Holding itself goes bankrupt. This case actually occurred at the end of 2023.(…) And why didn't anyone hold René Benko himself, the billionaire and the main figure of the entire Signa empire, jointly liable? Not only was this omitted; Benko even benefited from state aid from German taxpayers. Through the rents that Galeria had to pay to Signa, millions flowed back into Benko's empire of a thousand companies, investments and family foundations. (…) The state aid to the ailing Galeria was not only highly risky, but the WSF also ignored applicable EU law. According to this, so-called “companies in difficulty” were only allowed to receive support if they still had half of their equity capital as of December 31, 2019; But that had already been completely burned at Galeria since September 30, 2019. (…) “It is certainly no coincidence that former politicians are always on the payroll of Mr. Benko or Signa and also receive money there,” said Fabio De Masi, who, as a member of the Bundestag, made several inquiries to the federal government about Benko’s contacts, including Olaf Scholz. In the wake of the mega-bankruptcy, it became increasingly clear what a good network the “real estate gambler” Benko had, and not just in Austria...” Contribution by Ingolf Gritschneder from February 10, 2024 at tagesschau.de 
• The never-ending Karstadt story: On to the fourth bankruptcy! On, off to the new search for a “good” investor through ver.di
  
  • After another bankruptcy: ver.di is demanding a future for the approximately 12,000 employees at Galeria Karstadt Kaufhof
    "The United Services Union (ver.di) is concerned about the Galeria Karstadt Kaufhof (GKK) department store group, which has filed for bankruptcy again today. "This is absolutely bitter for the employees. They have forgone parts of their wages for years in order to save jobs, and Galeria Karstadt Kaufhof has repositioned itself as a company in the last few months. Now the company has once again gotten into economic difficulties due to the insolvency of the Signa parent company and for the approximately 12,000 employees and their families it is once again clear what will happen next for them,” said Silke Zimmer, member of the ver.di federal board and responsible for retail. "We demand that the new insolvency administrator do everything in his power to ensure that the good economic development that the company has enjoyed in recent months can be continued and that the remaining 12,000 jobs are retained. We as a union will fight with the employees for their future," said Zimmer. ver.di sees a good future for Galeria Karstadt Kaufhof with a stationary-digital department store concept. "Department stores are the heart of many city centers. They offer customers goods and good advice in a breadth and depth that they cannot get anywhere else. The Galeria employees are particularly responsible for this. They are the face of the department store," the trade unionist is convinced. “But what is needed now is an investor who will take Signa’s place,” says Zimmer. “From ver.di’s perspective, it would be desirable to have a strategic investor who has trading expertise and enables Galeria Karstadt Kaufhof to be maintained as a whole and thus secure jobs,” said the ver.di board member.” ver.di press release from January 9, 2024 , see also:
    • Planning stop at Hermannplatz NOW!
      “The Signa Group is slipping more and more:The project companies for the construction projects at Hermannplatz and Kudamm (both belong to Signa) are now insolvent. And even though the companies are insolvent, the Senate wants to continue the project-related development plan at Hermannplatz.This is absurd! The Senate, like the VERDI union, is hoping for a new investor. But if things didn't work out with Benko and his profit-hungry predecessors, why should things get better with a new one?!...”Hermannplatz Initiative on January 31, 2024 
    • Galeria: Uncertainties caused by Signa Holding insolvency
      “After ver.di was able to reach a special agreement shortly before Christmas, there is now renewed unrest due to the insolvency of Signa-Holding GmbH. From January 2024, negotiations on a large tariff package will continue…”ver.di-PM from November 30, 2023 - much better:
    • For a different department store – oriented towards the common good, from below and for everyone!Planning stop at Hermannplatz NOW!
      “On November 27, 2023, it was announced that Signa Real Estate Management Germany GmbH – a subsidiary of Signa Holding in Germany – had filed for insolvency. One day later, the entire Signa Holding group announced its bankruptcy in Vienna. The Senate Department for Urban Development, Building and Housing has now announced that they are no longer moving forward with plans for Hermannplatz for the time being. But despite the insolvency of Signa Holding, there is still no planning stop! This makes it clear that Signa will now start selling real estate and company shares! Signa Retail Selection AG, to which Galeria belongs, has already decoupled from Signa Holding! There is an acute danger that the department store building on Hermannplatz will be sold to the next real estate shark and Galeria will be sold to the next swindler. It is now even clearer than at the beginning of November that a building permit would clearly be in the interest of investors because it would allow them to increase the value of the struggling properties…”initiative-hermannplatz on November 30, 2023 
  • The never-ending Karstadt – history: on, on to the fourth bankruptcy!
    "On January 8, 2024, it was that time again: The department store group Karstadt Kaufhof Galeria GmbH announced that an application had been filed with the Essen district court to open insolvency proceedings. The first insolvency proceedings at Karstadt were completed in 2009. Galeria was also able to discharge its debts in the second insolvency proceedings in 2020 and 40 of 172 branches were closed, with around 5,000 employees losing their jobs. Also More than two billion euros in debt were canceled. That was apparently not enough, as the third bankruptcy in 2023 showed. In this process, the group was able to get rid of its liabilities of around 900 million euros, and the bottom line was that more than 5,000 of the 17,000 jobs were to be cut. Now Galeria was completely sucked into the wake of the alleged collapse of Signa Holding GmbH Insolvency proceedings. The parent company Signa is bankrupt and there is little optimism to be heard from the insolvency proceedings in Austria, because the Swiss Signa trading subsidiary, to which Galeria belongs, wants to sell the department store chain. And once again everything is open for the employees (…) In the bankruptcy, the Austrian multi-billionaire and Galeria owner René Benko once again put the gun on the federal government's chest: either there is state money or more than 17,000 jobs will be lost. The state should also forego the 590 million in rescue money from the first insolvency proceedings, in which the creditors at the time had to bleed two billion.If not, the insolvency plan stated, “business operations must be stopped immediately”. The shirtless demeanor of the owners has always been part of recent Karstadt history, but how obviously cheekily bold Benko maintains its business model - always with the insolvency regulations under its arm - is a new quality. The business model works like this, at least in the majority of his houses: The billionaire buys department stores in prime city center locations, separates the mostly financially weak operating companies from the valuable properties and, as their new co-owner, he then charges handsome rents. He is counting on help from taxpayers, who will step in when the department stores run out of steam. The benefits from the state treasury then also flow, because ultimately it is always about lots of jobs and lively inner cities. In short, this means privatizing profits and socializing losses. While thousands of employees were recently laid off, the majority shareholder René Benko had around 100 million euros paid out in dividends from the trading group's parent company, Signa GmbH. It also became known that the Signa Holding had once again invested heavily in the USA; with a US partner they had gone on a corporate purchasing spree with 134 million euros. (…) In the case of the never-ending Karstadt Kaufhof Galeria story, it seems pointless to calculate how much money and material assets have flowed from one pocket to the other over the past 19 years.This is not just about state cash injections, tax waivers, real estate values ​​in the billions, the 50 million euros that the insolvency administrator Hubert Goerg received, but also the high wages that the employees foregone and the social benefits for the people who have become unemployed. Since the ownership structure has not changed as a result of the insolvency proceedings, the owners still have the say over the management appointed and this is exactly what is preventing alternative solutions, for example for the continuation of the company in the form of cooperatives by the people who previously worked there. The money and material assets remain in the company or belong to the cooperative. There are enough successful examples of such a solution. In the current economic system in Germany, companies' insolvency procedures are regularly used to be able to carry out completely "crooked business" with legal blessing. In which money and goods, including public funds, are redistributed into the pockets of company owners and law firms and not only does the bank always win, but in bankruptcies the companies are always the winners. On, on to the fourth bankruptcy at Karstadt!” Contribution from January 9, 2024 from and at unionsforum.de . See also for example:
  • Closure of Galeria Kaufhof in Mönchengladbach: “We don’t even get severance pay anymore”“Ursula Schacht worked for decades at Galeria Kaufhof in Mönchengladbach. Shortly before the early closure, she and her colleagues received “terrible news”. Why the 55-year-old feels abandoned and why she was insulted by customers. (…) “We remaining employees have now been told that neither the severance payment of one and a half months' salary nor any money for the wage increase will be paid retroactively,” says the 55-year-old. A bonus of 500 euros, which she said was promised because she would work in the business until the end, will also be canceled. "I was fully expecting several thousand euros as cushion. After all these years with the company, they let us down again shortly before it closed." The notification reached Schacht and the other employees on the same day that the Galeria Karstadt Kaufhof department store chain filed for insolvency proceedings again. It is the third in just a few years. “The insolvency regulations stipulate that, for example, severance payments are not paid out directly, but must be entered into an insolvency table,” says Heino Georg Kassler from Verdi Handel NRW. "After the process is completed, what is left is distributed. This is of course very annoying for the employees, but it is mandatory." Schacht still believes that the current situation could have been avoided. "I and many colleagues have the feeling that we have been held back so that we can still be there during the Christmas business. Now we are faced with a fait accompli.”…”Article by Christoph Wegener from January 12, 2024 in the Rheinische Post online 
• ver.di reports a special agreement for the approximately 12,000 remaining employees at Galeria Karstadt Kaufhof: before Christmas, 500 euros and conversion of time credit into cash
  “After many rounds of negotiations, there are now the first steps towards a collective agreement for the approximately 12,000 remaining employees of the Galeria Karstadt Kaufhof department store group. In a first interim step, the United Services Union (ver.di) has now concluded a key agreement with the company management for a collective agreement and agreed on a special payment before Christmas. “In November there will be 500 euros and a time credit from 2023 in cash,” says ver.di negotiator Marcel Schäuble, briefly summarizing the agreement. It is then planned that all full-time employees will receive a 400 euro inflation compensation bonus and an additional 100 euros as a goods voucher; Originally, the company management had only offered an inflation compensation bonus of 300 euros. Both sides also confirm that they will continue negotiations in January on the large collective bargaining package and wages. The aim of ver.di is a binding adjustment of the table in the area in a collective agreement.
  "The result is a good success for the ver.di tariff commission, which negotiated tenaciously and stubbornly. Part-time employees receive the bonus pro rata depending on their working hours, with the minimum amount being 100 euros for cash payments and 25 euros for goods vouchers. Payment will take place in November 2023," said Schäuble. “This means that the interim step that our colleagues on the collective bargaining commission had set as their goal at this point in time was achieved in order to counteract the negative consequences of inflation and price increases for employees.”
  In addition to the inflation compensation bonus, a conversion of the time credit for the calendar year 2023 is also important. Accordingly, 50 percent of the time credit from 2023 should be converted into a one-off payment, which will also be paid out in November. The remaining 50 percent is converted into additional vacation days. These should also be able to be converted into a one-off payment if the Christmas business is successful. The prerequisite is that the plan targets approved by the Supervisory Board are achieved or not exceeded by a maximum of 10 percent.
  Negotiations for a collective agreement, which, from ver.di's perspective, must finally guarantee binding, fair and market-based wage adjustments after years of sacrifice by employees, will continue in January 2024.”Press release from November 9th, 2023 
• Collective bargaining at Galeria: disruption from the general works council
  “Last Wednesday, July 26, 2023, negotiations were held again in Frankfurt about the pay of employees at Galeria Kaufhof/Karstadt. During the last insolvency proceedings, the management terminated the valid “restructuring collective agreement”, which provided for a gradual alignment with the collective agreements in the retail sector.Apparently the reference to the collective agreements should now be completely cut off and a completely different regulation should be enforced.
  In the run-up to this round of negotiations, there was a very detailed article in the WAZ media group that dealt with the conditions at Galeria before the negotiations. It became clear that a member of the general works council, it was rumored to be the chairman, who is also a member of the supervisory board, had spoken out against ver.di's demand for complete alignment with the valid collective agreements. Orhan Akman, the former head of the retail department in ver.di's retail department and member of the supervisory board at Galeria, had also spoken out against ver.di's demand weeks ago.
  In this article, the managing director of Galeria was quoted in detail in which he was able to explain that it was impossible for Galeria to pay employees according to the collective agreement and that it was no longer up to date anyway. He explained that there needs to be a special collective agreement for department stores because the work done there is not comparable to other retail sales channels. So this is about fundamentals. As the retail association HDE demanded years ago, different T. should be used for the different sales channelscollective agreements are created. In this case for the department stores. The management is apparently supported by parts of the GBR and the supervisory board. As expected, there was no result in this negotiation. The company management stuck to its demand and ver.di for payment of the valid collective agreements, although it was explained in advance that a new step-by-step plan could be discussed. 
  This year's collective bargaining in retail is once again extremely tough. The Entrepreneurs make “offers” that would mean massive wage losses for employees. ver.di cannot accept this. It may be that this collective bargaining round involves a fundamental decision. Either retain the valid collective agreements or fragment the collective bargaining landscape.”Comment by Helmut Born from July 28, 2023– we thank you! See background:
  • Seventh Galeria collective bargaining round: Employers want to save money instead of building a model for the future
    “Even in the seventh round of negotiations, the employer side of Galeria Karstadt Kaufhof did not promise any binding income developments for the employees. The United Services Union (ver.di) criticizes: "Galeria's offer is completely unacceptable for the ver.di Federal Tariff Commission. Inflation hits the employees who have given up a lot of money in recent years and now even harder. No binding pay adjustments in the next few years - that means that the financial situation of the employees will worsen dramatically again," said ver.di negotiator Marcel Schäuble after the negotiation.The income of Galeria employees is currently at the level of the reduced salary (as of October 2022) before the initiation of insolvency proceedings. With the wages in force until then, which were regulated in the so-called integration and social collective agreement, “the income in the salesperson pay group is almost 500 euros lower per month than in the area collective agreement,” says Schäuble. Many employees no longer have any freely disposable income and are turning their backs on the company due to a lack of prospects because they can find employment with competitors on better terms…”ver.di press release from July 26, 2023 
  • Works council versus Verdi: Struggle for a collective agreement at Galeria
    “Before the next round of collective bargaining at Galeria, a controversy emerged between Verdi and the works council. What it means for employees…” PaidArticle by Frank Meßing from July 25, 2023 in nrz.de 
• Warning strikes in 19 Galeria branches on Easter Saturday - warning strikes, no occupations, and yet the company wants to take legal action against it! On Wednesday (April 12th) things will continue in several federal states
  
  • Renewed warning strikes at Galeria – ver.di calls on employees to take industrial action
    “As part of the collective bargaining negotiations that have been ongoing since February of this year, the United Services Union (ver.di) is again calling on the employees of Galeria Kaufhof Karstadt GmbH to go on warning strike in several federal states this Wednesday (April 12th). Branches in Bavaria, Berlin, Hesse, North Rhine-Westphalia and Rhineland-Palatinate are affected. With these actions, the employees want to increase the pressure in the deadlocked collective negotiations. (…) “Almost 1,000 colleagues responded to their union’s strike call in several federal states on Easter Saturday,” said Marcel Schäuble. “The fact that employees in both the stores affected by the closure and in the so-called continuation branches took part in the strike for a return to collective bargaining in the retail sector shows how great the anger of the employees is,” continued Schäuble…”ver.di press release from April 12, 2023 
  • Insolvent department store group: warning strikes in 19 Galeria branches
    “Galeria Group employees stopped work in 19 branches during a day-long warning strike. The company's management believes the strikes are illegal and threatens consequences.
    The workforce of Galeria Karstadt Kaufhof went on strike in a total of 19 branches in Hamburg, Baden-Württemberg and Hesse. The ver.di union had called for the all-day warning strikes. Despite the protest, shops remained open, albeit with limited activity. (…) “The workforce has been investing money in restructuring the company for many years and forgoing up to 5,500 euros every year,” said Lattekamp. The anger and disappointment of the employees are very great. Management recently ruled out a return to the collective bargaining agreement and called for working hours to be made more flexible. “Our response to these outrageous plans is the first regional warning strikes.” (…)The Galeria board had criticized the plans for warning strikes. “The planned strike measures are obviously illegal and threaten to cause ruinous damage for which you would be held liable,” wrote CEO Miguel Müllenbach and Galeria general representative Arndt Geiwitz to the ver.di management. The letter was available to the “Business Insider” portal. Both bosses recalled that Galeria is still in insolvency proceedings and in an “existential crisis situation”. According to the report by “Business Insider”, the company management describes the strike as illegal because it violates the integration and transition collective agreement and the principle of proportionality. In addition, it would aim to disadvantage creditors and favor employees “through short-term collection of funds from the insolvency estate,” wrote Geiwitz and Müllenbach to ver.di. It was said that the ver.di bosses and also the striking employees would be held personally liable for the resulting damage.”Report from April 8th, 2023 in tagesschau.de and before:
  • Galeria bosses threaten employees: management of insolvent Warenhausket